Agent-Based Simulation of the Search Behavior in China's Resale Housing Market: Evidence from Beijing

Hong Zhang () and Yang Li ()

Journal of Artificial Societies and Social Simulation, 2014, vol. 17, issue 1, 18

Abstract: In the paradigm of the search theory, we established the search model applicable to the characteristics of China's resale housing market, by modeling the search behavior for buyer and seller, respectively. Setting the parameters based on the Beijing housing market survey in August 2012, we implemented agent-based simulation to study the dynamics of the search behavior measured by search intensity and search time. Sensitivity test was also used to analyze the determinants of the search behavior for trading agents. The simulation results validate the idiosyncratic feature of the agent's search behavior, which is consistent with theoretical analysis. The increase of matching efficiency promotes the agents' search intensities, but the higher unit search cost can reduce the agents' search intensities. The buyer's search behavior is more sensitive to the change in the market tightness ratio. Brokerage service lowers the transaction price and lessens the agents' search intensities. Sensitivity test further reveals that, the matching efficiency and the market tightness ratio play very important role in improving housing market liquidity. The changes in the search cost and the broker commission rate can reduce the agents' search intensities significantly and there are critical turning points at which the abrupt change occurs.

Keywords: Resale Housing Market; Search Behavior; Search Model; Agent-Based Simulation; Sensitivity Analysis (search for similar items in EconPapers)
Date: 2014-01-31
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.jasss.org/17/1/18/18.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jas:jasssj:2013-37-2

Access Statistics for this article

More articles in Journal of Artificial Societies and Social Simulation from Journal of Artificial Societies and Social Simulation
Bibliographic data for series maintained by Francesco Renzini ().